Marketing Concept

The marketing concept revolves around understanding the relationship between the product and the customer. Key questions include:

• Where do customers buy the product?
• How do they use it?
• What features do they desire in relation to where they buy and how they use it?

Examples

• Charmin Toilet Paper: The "Don't Squeeze the Charmin" campaign humorously communicated the product's relationship with the customer by addressing the need for softness.
• Institutional Toilet Paper: To solve the problem of janitors frequently replacing toilet paper, a giant roll or dispenser was introduced, which needed replacing only once a week. Here, the institution is the customer.
• Core Idea: Everything is about the relationship with the customer and communicating benefits.

Positioning

Positioning is about packaging benefits in relation to the competition, segmenting the market, and differentiating the product to meet specific needs effectively.

Segments

• Gender: Men vs. Women
• Hair Type: Oily hair, dry hair, etc.

Research and Observation

Example from General Mills: Observing cereal-eating habits in Mediterranean diets, where grains and olive oil were mixed for babies, labeled as "formula" by mothers.

Functional vs. Ego Benefits

• Hamburger Helper: Functional for a quick after-work dinner, but not something one would serve to their boss, illustrating the balance between functionality and ego.
• Core Idea: Understanding what the customer wants and how to maintain and update the relationship with the product.

Marketing Mix

The marketing mix consists of actions to bring the product to the marketplace. It includes:

• Product: Example: Granola bars sold as a 6-pack in grocery stores or individually in vending machines.
• Distribution: Selling cereal in supermarkets and to restaurants in bulk dispensers.
• Packaging: Example: Lunchables, despite initial skepticism, succeeded because of the convenience it offered to busy moms.
• Price: Understanding the relationship between price, competition, and maximizing profits.

Examples

• Nature Valley Granola Bars: Sold in different formats and places to cater to different customer needs.
• Segmentation in Cereal: Different types like trail mix, sweet and salty, and basic snack, each positioned differently.

Additional Concepts

• Public Relations (Yoplait Yogurt): Breast cancer research program encouraging customers to send in foil lids in exchange for donations.

Market Research

• Purpose: To mitigate risk, such as testing the idea of a nutritious bar with olive oil as a stand-in for mother's milk, which was rejected by moms.
• Promotion: Example: $10 coupon for Kohl's encouraging customers to visit the store, often coordinated with TV advertisements.

The Impact of the Web

Marketing is undergoing significant changes with the advent of the web, creating two markets: the traditional market and the online market. The core marketing concepts still apply online:

Example: Buying ink from an aftermarket supplier online with benefits like price comparison, bulk discounts, and free shipping, emphasizing customer service and simplified processes.

Conclusion

Understanding the three core concepts—marketing concept, positioning, and marketing mix—is essential for mastering marketing fundamentals. These concepts help in creating effective marketing strategies and adapting to changing markets.